Benchmark Reiterates Buy Rating on Qualcomm (QCOM)

Benchmark analyst Cody Acree reiterated a Buy rating and $200.00 price target on Qualcomm (NASDAQ: QCOM).

The analyst commented, "Despite Qualcomm’s weakness in the after-hours market that we expect is being driven by investor disappointment that the company’s EPS guidance mid-point only matched Street estimates, we felt like it was a very clean quarter, with growth across all major categories. Automotive grew 21% annually IoT grew 24%, and even Handsets managed to grow 7%, driven by demand for Snapdragon 8 Elite platform in premium-tier handsets. While a big part of the company’s current and recent weakness is the result of lingering investor fears regarding the long-term financial impact of the loss of Apple’s business. We believe the company has been communicating this issue well with the Street for quite some time and analysts and investors have had ample opportunity to factor the event into models and estimates, and ultimately investors have factored this into Qualcomm depressed valuation. During this same time, Qualcomm has been aggressively pursuing areas of diversification, with Autos now at $1 billion of quarterly contribution and IoT at almost $1.7 billion."

For an analyst ratings summary and ratings history on Qualcomm click here. For more ratings news on Qualcomm click here.

Shares of Qualcomm closed at $159.06 yesterday.

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